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...harm's way and then safely out. Even worse, while the Air Force wants more fighters from a bygone era, it has been underbuying the drones that will rule the skies in the future. Though the number of unmanned aircraft is soaring, it hasn't kept pace with the demand in Afghanistan and Iraq, where requirements for full-motion video are growing 300% annually. For every F-22 that isn't bought, the Air Force could add about a dozen desperately needed drones to its fleet...

Author: /time Magazine | Title: Can Robert Gates Tame the Pentagon? | 2/12/2009 | See Source »

...succeed, Gates will need backing from Obama, along with a plan to spend defense dollars more smartly, during the recession. Despite the protestations of lawmakers, defense spending is an inefficient way to create jobs because the skills that defense jobs demand require premium paychecks. (Civilians working on missile defense for Boeing in Arizona earn three times the state average, the company boasts--great for them, but not so good for taxpayers or the unemployed.) Gates has sent the White House $10 billion in military projects to include in the stimulus package--barracks, hospitals, clinics, child-care centers--that can more...

Author: /time Magazine | Title: Can Robert Gates Tame the Pentagon? | 2/12/2009 | See Source »

Consider our recent track record. Last July, Congress passed a bill to help the housing market. In an effort to churn demand and stabilize home prices, the bill created a $7,500 tax break for first-time home buyers. It also created a program to prevent foreclosures. Unfortunately, no major lenders signed up. Bottom line: only 25 loans have been rewritten...

Author: /time Magazine | Title: How to Fix the Housing Market | 2/12/2009 | See Source »

...what does have a shot at working? Most proposals on the table are designed to boost demand without distorting the market and at the same time restrain supply by keeping people in their homes. But the harsh reality is that fixing the crisis will require some acknowledgment that there are a number of people out there who shouldn't be homeowners. Here's a guide to the latest ideas about what...

Author: /time Magazine | Title: How to Fix the Housing Market | 2/12/2009 | See Source »

...core issue is that there aren't enough people buying houses. Usually, when price goes down, demand rises, but in the housing market, falling values make potential buyers fearful, sending them to the sidelines as they wait to see how much cheaper homes will get. If we could restore buyers to the market, the thinking goes, prices would stabilize, delinquent borrowers could sell instead of falling into foreclosure, and the value of the mortgage-related securities contaminating our financial system would stop being such a mystery...

Author: /time Magazine | Title: How to Fix the Housing Market | 2/12/2009 | See Source »

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